Labels like ‘ESG’ and ‘EPC’ fail to connect - brokers must reframe the offer around comfort, cost and long-term value
When it comes to older homeowners and green or ESG‑aligned mortgages, the market response is cautious, said Matthew Fleming‑Duffy, senior consultant at Knight Frank Finance and specialist in later‑life lending. While he observes genuine interest, uptake remains limited and the segment’s unique motivations require a tailored approach.
Interest exists, but not actively sought
Fleming‑Duffy notes that older borrowers aren’t actively searching for green mortgages in the way younger clients might. Their priorities are grounded in immediate, personal concerns: staying warm, managing costs, and maintaining comfort. The idea of a “green product” simply doesn’t drive engagement.
“Older borrowers … aren’t looking for a green mortgage,” he said. “Their motivations … tend to be, well, I’m looking to make my home more warm, more easily kept comfortable … what impact does this kind of stuff have on my energy bills?”
Many of these homeowners may not even know whether their home has an Energy Performance Certificate (EPC), making the language of EPC-linked products feel distant or irrelevant. A borrower who has lived in the same home for decades is unlikely to think in terms of ratings and acronyms.
Skepticism and fatigue around ESG
Part of the reluctance stems from what Fleming‑Duffy calls ESG fatigue. For many older clients, ESG feels like a corporate catchall, something associated with pension fund performance or political talking points rather than meaningful homeowner action.
“We’ve heard so much for years about ESG,” he said. “What does that mean to you as a homeowner?” He adds that, in practice, some ESG-labelled investments have underperformed, reinforcing skepticism.
Fleming‑Duffy suggests that the solution lies in dropping the jargon and shifting to outcomes-focused language. Rather than talking about sustainability, advisers and lenders should talk about comfort, cost control, and improving a home’s resale potential. The concept of energy efficiency may resonate better when positioned as part of broader home improvements - like updating a kitchen or replacing windows - rather than a standalone “green” project.
Products that miss the mark
Currently, most green mortgage products on the high street offer marginal incentives, such as a slightly better rate or a small cashback, for homes that already have an EPC A or B rating. These deals rarely address the needs of later-life borrowers, who often live in older homes with lower energy ratings and aren’t seeking a traditional remortgage.
“There aren’t many later-life specific green mortgage products,” Fleming‑Duffy said, adding that whilst these products do exist, they are the exception, not the rule.
He draws a sharp distinction between two types of green finance. The first is the mainstream “green mortgage,” which rewards already efficient properties. The second is a retrofit mortgage, designed to help homeowners fund upgrades that improve a home’s energy profile. The latter is more relevant to later-life clients, but far less common and often poorly priced.
Fleming‑Duffy also argues that the financial tools needed to support energy upgrades already exist - they’re called home improvement loans. The issue is that the industry hasn’t effectively repositioned these familiar products in a way that connects them to green finance goals.
The missing regulatory piece
Industry ambition alone, however, may not be enough to move the dial. Fleming-Duffy argues that to unlock the full potential of green mortgages – and retrofit products in particular – lenders need sustained support from regulators. He believes the FCA must provide clear guidance on defining and applying green finance standards, while the Financial Ombudsman should give lenders confidence that they will not be held responsible for installation or performance issues arising from retrofit works undertaken by third-party contractors.
Crucially, he adds, the Bank of England should consider lowering capital requirements for certified green finance products. In his view, this would be a prudent step that could directly enable banks to offer more competitive pricing, ultimately helping to reduce mortgage costs for energy-efficient homes.
Reframing the opportunity
While interest among later-life borrowers exists, the current green mortgage offering remains ill-matched to their needs. For brokers, the opportunity lies not in selling a label, but in reframing the conversation. That means speaking in tangible terms - lower bills, warmer homes, long-term value - and recognising that many older homeowners don’t know (or care) about EPC ratings or ESG acronyms.
By positioning energy efficiency as part of broader home improvement conversations, and advocating for better retrofit financing tools, advisers can help unlock a market segment that is underserved, yet ready to benefit. Green finance doesn’t need to be a buzzword. For the right client, it can be a practical solution with long-term payoff.
